hiii every1.. i have 1 query in tax... if any assesse follows cash basis for accounting and purchased 1 asset in june12 and made payment in 2nd half i.e. in jan13 then will depreciation be charged for whole year or at half rate as he follows cash basis??
8 Replies
Ankit
(CA, CS)
(3064 Points)
Replied 08 March 2013
Dear Preeti,
since you have only made half payment, your balance sheet will show the value ofthe asset as only half of its total cost...
therefore, according to me, depreciation will be allowed only on the half of the total cost of the asset....
preeti goel
(student)
(44 Points)
Replied 08 March 2013
thanks for the reply ankit. but yhe thing is no half payment has not been made in june .. whole payment has been made in jan only.. assest was pur on credit in june..!!
Ankit
(CA, CS)
(3064 Points)
Replied 08 March 2013
You are welcome Preeti...
was it purchased on hirepurchase?
preeti goel
(student)
(44 Points)
Replied 08 March 2013
no. on credit..!! bill has shown the date of june only but payment was made in 2nd half
Ankit
(CA, CS)
(3064 Points)
Replied 08 March 2013
Ok...this is a moot point...
according to me, what you can do is that if the asset has been put to use in july(date of the bill) then you claim the depreciation on the bill value
Ankit
(CA, CS)
(3064 Points)
Replied 08 March 2013
you are welcome....
if you have any other doubts..feel free to ask.
Ashutosh
(Xx)
(32 Points)
Replied 08 March 2013
is there any ammendments in heads of income for ipcc may13 plzz suggest me any chapter where there is no ammendment so that i can complte it first before my ammendmnts classes in my tuition
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